You have this:
Creating command line "link.exe @E:\DOCUME~1\SEBAST~1\LOKALA~1\Temp\RSP1690.tmp"
while it should be this:
Creating command line "link.exe -lib @E:\DOCUME~1\SEBAST~1\LOKALA~1\Temp\RSP1690.tmp"
For some reason I'm not aware of, your msvc doesn't compile the lib as a lib. I also use msvc6 + sp5 + processor pack, so I can only guess it's due to some bug or weird config in your msvc installation